Mahindra & Mahindra (M&M) reported a mixed set of earnings for the June quarter, with net profit and revenue beating Street estimates, while operating performance came in below expectations.
The company’s consolidated net profit rose 6.8% year-on-year (YoY) to Rs 3,685 crore in the June quarter of FY27, ahead of the Bloomberg consensus estimate of Rs 3,569 crore. The company had reported a profit of Rs 3,450 crore in the corresponding period last year.
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Topline, also known as revenue, increased 23% YoY to Rs 41,920 crore, marginally exceeding the Street estimate of Rs 41,845 crore. Revenue stood at Rs 34,083 crore in the year-ago quarter.
The company’s operating performance, however, fell short of expectations. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 7.9% YoY to Rs 5,111 crore, missing the consensus estimate of Rs 5,353 crore. EBITDA margin contracted to 12.2% from 13.9% a year earlier and was below the estimated 12.8%.
The automotive business reported a 24% YoY increase in revenue to Rs 31,033 crore, while EBIT remained largely flat at Rs 2,211 crore.
Meanwhile, the farm equipment business posted 19% YoY revenue growth to Rs 10,947 crore, with EBIT rising 11% to Rs 2,028 crore.
Separately, M&M said its board has approved a proposal to amalgamate Mahindra Investments Ltd. with Mahindra & Mahindra, subject to the necessary regulatory and shareholder approvals.
Providing a broader business update, the company said its automotive business maintained strong momentum during the quarter, with total volumes, including sales by subsidiaries, rising 23% YoY to 304,000 units. Utility vehicle volumes reached 175,000 units, while the company’s SUV revenue market share stood at 25% during the quarter. Consolidated revenue from the automotive segment increased 32% YoY to Rs 34,387 crore, while segment profit after tax rose 21% to Rs 2,129 crore.
The farm business also delivered a robust performance, with volumes rising 18% YoY to 158,000 units and market share improving to 44.9%. Consolidated revenue from the segment grew 15% to Rs 12,501 crore, while profit after tax increased 15% to Rs 1,520 crore.
The company’s services businesses continued to record healthy growth during the quarter. Mahindra Finance reported a 13% increase in assets under management, while Tech Mahindra expanded its EBIT margin to 14.4% and posted a 28% rise in profit. Mahindra Lifespaces more than doubled residential pre-sales to Rs 925 crore, while Mahindra Logistics reported a 23% increase in revenue and a three-fold jump in profit. Overall, the services portfolio posted 31% YoY growth in consolidated revenue to Rs 12,899 crore, while consolidated profit surged 80%.
Commenting on the performance, Dr. Anish Shah, Group CEO and Managing Director of M&M, said the company had delivered “a strong start to F27” despite macroeconomic headwinds. He said the group’s diversified portfolio helped it navigate the challenging environment, while its automotive and farm businesses strengthened their leadership positions. Shah added that Tech Mahindra and Mahindra Finance made significant progress on their strategic priorities, while the group’s Growth Gems continued to accelerate their growth momentum.
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